Seaport Res Ptn Updates Earnings Outlook for American Airlines

American Airlines Group Inc. (NASDAQ:AAL) recently received an upgrade on its earnings estimates from the analysts at Seaport Res Ptn. In a report issued on January 21, 2025, analyst D. Mckenzie revised the Q3 2025 earnings per share (EPS) forecast for the airline, raising it from an earlier estimate of $0.50 to $0.65 per share.

This boosted outlook comes alongside a "Strong-Buy" rating from Seaport Res Ptn, indicating strong confidence in the stock's performance. Currently, the consensus estimate for American Airlines Group’s full-year earnings stands at $1.73 per share.

Recent Analyst Ratings Changes

In addition to Seaport's updates, other research firms have recently made their own adjustments to American Airlines' stock ratings. For instance, Melius Research upgraded the airline from a "hold" to a "strong-buy" rating in a report dated January 6. TD Cowen also made a positive move, increasing their rating from "hold" to "buy" and adjusting the price target for the stock from $17.00 to $25.00.

On the other hand, Raymond James confirmed an "outperform" rating but lowered their price objective for American Airlines from $24.00 to $23.00. StockNews.com took a different direction by cutting their rating from "buy" to "hold" on January 21. Jefferies Financial Group also raised their rating, moving from "hold" to "buy" and increasing the price target from $12.00 to $20.00.

Overall, there is a mixed but generally positive sentiment surrounding the stock, with eight analysts rating it as a hold, ten giving it a buy rating, and three categorizing it as a strong buy. According to MarketBeat, the average analyst rating stands at "Moderate Buy" with a consensus target price of $18.99.

Current Trading Details of American Airlines Group

As of the last market update, American Airlines Group opened at $16.96 per share. The airline holds a market capitalization of $11.14 billion, a price-to-earnings (P/E) ratio of 51.40, and a price-to-earnings growth (PEG) ratio of 0.97. The stock's 50-day moving average is $16.71, while the 200-day moving average is $13.23. Within the past 12 months, the stock has seen a low of $9.07 and a high of $19.10.

In its most recent earnings report released on January 23, American Airlines Group reported earnings of $0.86 per share, significantly surpassing the consensus estimate of $0.39. This performance was marked by a net margin of 0.51% and a negative return on equity of 18.62%.

Institutional Investment Trends

Institutional investors have been active in modifying their stakes in American Airlines Group. For example, Heck Capital Advisors LLC acquired a new stake in the airline's shares during the fourth quarter, valued at around $98,000. R Squared Ltd also entered the market, purchasing shares worth $170,000.

KBC Group NV increased its holdings in the company by 46%, bringing their total to 8,982 shares valued at $157,000. CX Institutional improved their position by 22%, now owning 17,497 shares valued at $305,000 after adding 3,152 shares last quarter. Furthermore, Janney Montgomery Scott LLC raised its stake by 16.6%, now holding 16,119 shares worth approximately $281,000.

Notably, hedge funds and institutional investors together own 52.44% of American Airlines Group’s stock.

Insider Activity

On the insider front, CEO Robert D. Isom, Jr. sold 102,441 shares of the company on December 27 at an average price of $17.21, fetching a total of about $1,763,009.61. After this transaction, the CEO holds approximately 2,967,984 shares worth about $51,079,004.64, reflecting a 3.34% reduction in ownership. This transaction was disclosed in a filings document with the Securities & Exchange Commission, which is accessible to the public.

About American Airlines Group

American Airlines Group Inc., via its subsidiaries, operates as a major network airline. The company provides scheduled air transportation services for both passengers and cargo, utilizing hubs located in major cities such as Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. It also connects through international gateways in locations such as London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.

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